How to Find Foreclosures in Dallas-Fort Worth

For the second straight month, the number of foreclosed properties across the United States jumped to a record level, according to RealtyTrac.com.  The total number of repossessions is estimated to be as high as 93,000 across the nation.

This is somewhat surprising, being that April was the first month in recent history where the number of foreclosures actually fell from the previous month.  Long story short, this behavior is indicating somewhat that the overall number of foreclosed properties has peaked.  Only time will tell, though.

BENEFITS OF BUYING FORECLOSURES

According to the National Association of Realtors, the typical discount received from purchasing a distressed or foreclosed property is on average around 15 percent.  That’s amazing, as long as the condition of the property isn’t deplorable.  Why does this matter?  Generally, to receive financing for a home, the property has to meet certain conditions and requirements in regard to its physical state.  Bad roofs, wiring or plumbing all represent types of defects that would make a property essentially “un-lendable.”  So unless you are planning on paying with cash, you’re going to have to get an appraisal or in depth inspection to see if the property will meet lenders requirements of livability before you purchase.

DIFFERENCES BETWEEN BUYING A FORECLOSURE AND A TRADITIONAL PROPERTY

The main difference between buying a foreclosed property compared to a traditional home is that the home itself is owned by the bank, or lender.  Luckily for you, banks are much more eager to sell their foreclosures as soon as possible in effort to save money on taxes or other operational costs associated with home ownership, or in their case, management.

Another difference you will notice is the actual loan application process.  Even though legally you can work with any lender or loan officer you choose, often the bank who owns the house will require that you get pre-approved with their institution before they will accept your offer.  Overall they just want to be doubly sure that you can afford the house before they sell it to you.  Luckily though, you are still free to use any lender you choose once the process gets started.

Last of all, the bank who owns the house will likely require that you put more money down when you make an offer.  Known as “earnest money,” this compensation is paid at the time of closing to show that you (as the buyer) are serious about following through with your contract.  With foreclosed houses, you can expect to write a check for at least $500.

WHERE TO GET STARTED

Lucky for you, the process of buying a foreclosure starts the same place as a traditional home, which is getting pre-approved.  As mentioned earlier, the bank wants to make absolutely certain that you can afford to make the payments on the house before they go into negotiations with you.  They start by having a loan officer see how much you qualify for, as well as giving you estimates on closing costs or monthly payments so you know what to expect in regards to money issues.  This is totally normal, and will preemptively make sure that you don’t get into a mortgage that you can’t afford.

So, if you have any questions about the foreclosure process or getting pre-approved, don’t hesitate to CONTACT US and we will get back to you as soon as possible.